Why Not Check out Abington Yourself?One of the good things about companies listed on both the TSX and TSX-V is anyone can look at their company documents for free. Just click on the following link or copy and paste it into your browser:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00013494
Now open the Interim Financial Statements posted on 24th Sept 2010. On page 3 you can see the Cash and Cash Equivalents of the company as of the quarter ended 31st July 2010 were $1.45m. Now go to page 4 and look at the net revenues from oil and gas production for the quarter, $53,015. Expenses were $257k for the same quarter, of which $194k was "Consulting Expenses". Then go to page 5 and you can see the net loss for the company for the quarter was $188k. Then go to page 6 and you can see the Cash and Cash Equivalents for the end of the quarter consisted of $491k in cash and $965k in Treasuries. If we assume the company has continued to lose money at the same rate since, and a net income of $53k per quarter isn't going to cover expenses of $257k per quarter, then it will have lost a further $188k since then so it's cash balance is now down to around $300k.
Then go to Notes 8, 9 and 10 on pages 11-13. Here you will find where the money is being spent, those "Consulting Expenses" listed above, and it's all going into the pockets of the directors and various insiders. And it's here we have a problem for those directors and insiders because ABL's net income per quarter is only $53k.
Then go to Abington's News Releases:
https://www.abingtonresources.com/news.asp. There you can see that the company has attempted private placements twice, once in November 2009 and once in January this year. If there is no news release saying those private placements have closed, that means the private placements have failed. They company has been unable to sell those new shares.
So, what does this all add up to? It adds up to Bob's bread and butter work. He pumps ABL to his subscriber base, they bid the price up and buy worthless shares. This increases average daily volume and makes it look as though there is investor interest in the company. This allows the PP to go ahead so the directors can keep paying themselves $100K+ per year for doing absolutely nothing. The PP is the real scam and it's what Bob is paid for.
It sure beats working and it's all legal. Like I said, caveat emptor.
p.s. I'd like to dedicate this post to david77, wrapped in a red satin bow with a cherry on top. Enjoy scumbag.